Empyrean Energy PLC (LSE:EME) issued an update on its involvement in the Mako Gas Project, located within Indonesia’s Duyung Production Sharing Contract, outlining continued advancement of the development.
Project operator Conrad Asia Energy Ltd (ASX:CRD), together with its majority-owned subsidiary West Natuna Exploration Limited, confirmed that more than $280 million in capital contracts had been awarded by the end of the first quarter of 2026. These commitments account for over 80% of the project’s total capital expenditure.
The awarded contracts cover key components including the drilling rig, subsea systems such as umbilicals, risers and flowlines, as well as the conductor support frame and other long-lead equipment. Contractors have already received several milestone payments, with overall costs remaining in line with prior guidance.
The initial development phase will consist of six wells tied back to a leased Mobile Offshore Production Unit with a processing capacity of 172 million standard cubic feet per day. Gas produced will be transported through an approximately 59-kilometer, 18-inch pipeline to the KF platform in the Kakap PSC, before being routed via the WNTS pipeline into Indonesia’s domestic gas market.
Agreements on gas allocation volumes and transportation tariffs within the WNTS system have been reached with SKK Migas and the WNTS Joint Venture. A formal Gas Transportation Agreement is expected to be signed in the coming weeks.
Total capital investment required to reach first gas is estimated at $320 million on a 100% basis. The project is fully funded and remains on schedule to deliver first gas in the fourth quarter of 2027.
Under a previously announced agreement with Conrad dated February 23, 2026, Empyrean is entitled to 8.5% of all cash payments made to West Natuna Exploration Limited.
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